How To Secure Site for Your Manufacturing Plant in India?

An increase in the young working population and the government’s renewed interest in strengthening this country’s product market has led to the sustainable development of India’s manufacturing sector. So, it is no surprise that this nation has become the third-most sought-after manufacturing destination in the world. For companies around the world, it can be a daunting task to manage the complications of entering this uncharted territory of a foreign market. Interestingly, trusted management consulting firms have played a crucial role in offering these global enterprises high-impact strategies via regional expertise and knowledge of this trade. These notable investments from international brands are bound to leave lasting impacts on India’s financial blueprint. Moreover, experts have observed that if this country succeeds in its inherent potential of becoming a global manufacturing hub, it’s capable of adding more than US$ 500 billion to the worldwide economy by 2030.

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How does PESTLE Analysis Help to Secure a Manufacturing Plant in India?

In order to ensure that foreign firms are able to mitigate the risk factor when they enter the Indian market, these consultancy firms apply a micro-environmental business analysis. Generally referred to as a PESTLE analysis, this framework is built upon the principles of conducting market research using strategic management and business environment scanning.

As its acronym suggests, this assessment considers political, economic, socio-cultural, and technological factors capable of affecting a business’s growth and development. Management consultancy firms depend on this assessment for their system-level feasibility study. This way, foreign firms can comprehensively understand the practicality of securing a specific or specific location for their manufacturing plants. For instance, the natural environment’s resources are quintessential in establishing a thriving supply chain mechanism. This analysis pays excellent attention to:

• Tax policies
• Labour laws
• Exchange and inflation rates,
• Career attitude of the population
• Research and Development activities
• Consumer, Antitrust, and Employment Laws

A precise and all-inclusive assessment of all these factors allows these management consultancy firms to offer global businesses a proper insight into the country’s market situation. Consequently, foreign investors can create a framework of qualitative and quantitative parameters needed to identify the land area finalization. According to these available data, a company can make an informed decision about acquiring a real estate property.

Government Land Procurement Methodology

After a company finalizes a site, it needs to prepare a land application and a detailed project report. It is crucial for this report to contain holistic, across-the-board particulars, including:

• Site selection
• Schedule of implementation
• Details about the raw materials available
• Thorough financial analysis
• Process Flow and Block Plan diagram
• Registration details, etc.

The companies are required to submit this crucial paperwork to the governmental body, which may further call up the associated authorities to clear up any queries regarding the documents. Accordingly, Screening Committee Meeting is arranged for land allotment, where the companies must present all their relevant credentials.

Based on these courses of action, the companies receive the allotment letter from the government bodies. Consequently, a company and the government sign the land agreement for allotted land parcels. After a joint measurement record with these government bodies regarding possession of land, this company gets a possession receipt for the same.

Private Land Procurement Approach

Management Consulting Firms like Tecnova also guide these global enterprises in procuring private lands for setting up their Manufacturing Plant in India. After calculating the circle land rate of the finalized land parcel and checking the land status, the companies negotiate with the real estate owners under consideration. These firms help out the companies get proper legal assistance quintessential to making the deal. When the land owner and the potential buyers reach a settlement, an LOI/MOU is drafted to establish the commercial terms.

Accordingly, the parties involved can review the land sale agreement and conduct the land’s joint measurement and boundary marking. The buyers can take possession of the site after the sales deed is registered.

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Why Management Consulting Firms are Crucial aspects for Global Investors?

A steady FDI inflow into this nation’s manufacturing and industrial sectors has the potential to reshape the Indian economy for the better. In the first half of the financial year 2021, there was ~US$ 30 billion in foreign direct investment in India. Suffice to say, the interest of global conglomerates in the prospects of this country is palpable.

Trusted management consultancy firms in India, like Tecnova, employ professionals with hands-on experience in the infrastructural and structural backgrounds of both developed and under-developed industrial estates. As foreign investors are likely to be not aware of the minute ground reality of regions in question, these firms are irreplaceable in creating a blueprint for sustainable growth.

Reliable consultancy firms use meticulous filter-down approaches to finalize the land site, which can best cater to all the requirements of the investor’s business. The manufacturing sector is a widespread industry comprising numerous diverse enterprises. So, these managed consultancy firms can provide in-depth knowledge about the development control regulations, cost, and coverage area associated with these miscellaneous businesses.

The Foreign Corrupt Practices Act, it must be mentioned, is a key factor when it comes to land acquisition in a foreign land. This is a preventive measure to eradicate malpractice and corruption in the industry by influencing foreign officers. Noted management consultancy firms work in tandem with these set rules and regulations, adhering strictly to the laws while securing a site for Manufacturing Plant in India.

‍Reference

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